Caixin
Mar 29, 2021 06:53 PM
BUSINESS & TECH

Electric Vehicle Startup Faraday Future Raises $100 Million in Run-Up to U.S. Backdoor Listing

What’s new: Faraday Future, the electric-vehicle maker founded by disgraced Chinese online video pioneer Jia Yueting, announced it has received access to a fresh $100 million in funding.

The company said $85 million of the figure is coming from funds managed by the credit group of Ares Management Corp. The remaining $15 million is coming from funds managed by affiliates of Birch Lake Fund Management LP, according to its announcement dated Friday.

It said it will use the new funds to build and equip its manufacturing facility in Hanford, California, in the run-up to the eventual manufacturing of its first mass-produced car, the FF 91.

Background: Faraday Future was founded by Jia Yueting, who also founded the popular LeTV internet-based TV service that was the centerpiece of the company LeEco. But that company expanded too quickly and is now a shell of its former self, with Jia ousted from his positions along the way.

His lone remaining role was at Faraday, where he is now chief product and user officer. Faraday was previously planning to build a major production facility in Las Vegas during LeEco’s heyday, but later scrapped the plan due to lack of funding.

Since then the company has moved forward with the latest plan to produce the FF 91 in California. It is currently planning to raise another $1 billion through a backdoor listing on the Nasdaq.

Related: EV Startup Faraday Future Seeks $1 Billion in Backdoor Nasdaq Listing

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Yang Ge (geyang@caixin.com)

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